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Tesla Holiday Update: New UI for Model 3 and Y, Light Show, blind spot camera improvements & more
Just a few days before Christmas, Tesla is kicking off the holidays with a bang. This year’s Holiday Update includes a few fun surprises for Tesla owners, including new games and a few other fun features.
Teslascope, a Tesla software update tracker service, has shared that the 2021.44.25 update is being rolled out to employees for now, with a wide release following in the lead up to Christmas. Reports shared online suggest that the update works very smoothly on vehicles like the Model 3 and Model Y, however.
New Features
First off is the Light Show, which enables Tesla vehicles to dance to a choreographed light show any time of the year. The feature was a signature trick of the Model X, so it is pretty interesting that Tesla is now rolling it out to the other vehicles in its lineup. The Light Show feature can be accessed through the Toybox.
In its Holiday Update, Tesla also introduced the Customizable App Launcher, allowing owners to customize the menu bar in their infotainment systems. This should go perfectly hand-in-hand with the Model 3 and Model Y’s update UI, which now matches the interface of the Model S Plaid and new Model X that were rolled out this year.
“Drag and drop your favorite apps to any position along the bottom menu bar for easy access. To customize your menu bar, hold any icon and then drag to reorder. To adjust climate controls such as heated seats and defrost, tap on the temperature or swipe up from the bottom of the screen,” the update’s Release Notes read.
Feature Improvements
As with any update, Tesla improved a few key features, including vehicle controls, blind spot monitoring, and Waypoints.
Simplified Controls makes it easier for Tesla owners to focus on navigation, media, and the most common primary controls. The improvement should make accessing features in the infotainment system easier, so driving or operating a Tesla may be more convenient and perhaps even safer.
The Blind Spot Camera feature is probably one of the best improvements in the Tesla Holiday update, as it provides vehicles with a video feed showing their blind spot when a turn signal is activated. “You can now automatically see a live camera view of your blind spot whenever you activate the turn signal,” the Release Notes for the feature read.
The Blind Spot Camera feature will most likely improve the safety of Tesla’s vehicles. Tap Controls>Autopilot>Automatic Blind Spot Camera to enable the feature.
Tesla also made trips easier with Edit Waypoints. The navigation improvements will probably be quite useful to families taking trips this holiday. The feature allows drivers to reorder or add multiple destinations to their route. Edit Waypoints will update the arrival times for each change on the route. “To add a stop, or edit a trip, initiate a navigation route, and tap the more options button not he turn list,” wrote Tesla on the Edit Waypoints Release Notes.
New Arcade Improvements
Being a Holiday Update, 2021.44.25 is rife with a number of improvements for Tesla Theater and Tesla Arcade. Access to a popular social media platform has also been enabled.
First up is Sonic the Hedgehog, which Elon Musk himself announced on Twitter recently. Multiplayer support for The Battle for Polytopia has also been enabled, which should make in-car gaming sessions even more fun.
Sudoku has also been added to the Tesla Arcade, complete with a mode that includes a smart hint system for beginners. Also, the popular social media app TikTok is now accessible to Teslas.
Other Improvements
Update 2021.44.25 is not all fun and games. Tesla included some Cold Weather Improvements to its Holiday Update, too. Preconditioning the cabin from the Tesla Mobile App when the battery is at a lower state of charge is now enabled. First row seat heaters can now automatically regulate seat temperatures based on the cabin’s environment and control set temperature.
Managing dashcam clips is also easier, as videos can now be deleted directly from the infotainment system. Themes for the infotainment system have been rolled out, too. For instance, Dark Mode is now available for Tesla displays. Dark Mode may be a simple update, but it could make vehicles safer, as a darker display reduced the chance of screen glare for the driver.
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Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
